REGULATORY COMPLIANCE

With the new addition of experienced land management professionals to our team also brings clients that can benefit from our accounting services as well.

An inaccurate division order can spell a lot of trouble for all parties involved. Mispayments are not always detected expeditiously, and they can often create practical and legal challenges if they are not resolved quickly. However, the unfortunate reality for operators is that, without thorough oversight, inaccuracies are inevitable, especially when you factor in varying division order laws from state to state. These mispayments are usually caused by simple human error: miscalculations, typos, system errors, ownership analysis errors, and so on.

Despite how far the field has advanced into the digital sphere, the Oil and Gas industry is still overrun with legacy software notorious for a lack of transparency. In addition, many companies are still using manual processes such as physical spreadsheets to manage their assets alongside these legacy databases. This lends to control issues, data integrity concerns, and potential legal trouble. Transparency— or the lack thereof— impacts many facets of your business, including your year-end processing. Here are a few of the ways transparency shapes your company functions:

Whether you’re an E&P operator, part of a private equity firm, or a midstream company, you’re probably expected to be GAAP compliant. But fully understanding GAAP procedures can be a tall task— albeit an important one— especially if you don’t handle your own business’s accounting. Not complying with GAAP can lead to severe consequences for your business, so we’ve explained the 10 GAAP principles and what they mean, how these standards apply to your business, and what the requirements are to be GAAP-compliant.

When a company gets into the Exploration and Production business, there are usually several drivers. The potential for massive revenue is chief among them, but do they always think about the costs? Like any business, you don’t get into business to lose money so the costs must be weighed against the benefits. The E&P space is one of the most lucrative choices right now because the most recent price drop has caused more innovation in the market, making it easier to produce more at a lower cost. The costs of producing a well or lease are can be predicted, but what is not always foreseen is the regulation attached to certain lands. There are four types of lessors (mineral owner): Fee (not a government), State, Federal (US), and Tribal (Native American). Each Lessor type has its own set of regulations.